TOKYO , Japan -LRB- CNN -RRB- -- Given the magnitude of Japan 's recession , it should perhaps come as little surprise that the fantasy-obsessed animation industry has received a hard dose of reality .

Nobuki Mitani is an `` in-between '' animator -- one of the lowest paid positions in animation .

Yasuo Yamaguchi , executive director of the Association of Japanese Animators , said the industry has been rocked by the country 's deepest recession since World War II .

`` The spread of free Internet downloading is having a deadly effect , '' he said .

Japanese animation is roughly a $ 2 billion-a-year industry . Revenues peaked in 2006 but have since fallen off , as lower advertising revenues lead to fewer new programs .

Yamaguchi said the animation industry is important to Japan 's economy and that the government should be helping it through these tough times with subsidies . Watch CNN 's Morgan Neill report on anime ''

Unlike some big screen animated features from the United States that rely almost completely on computer animation , in Japan , almost all features are drawn by hand -- a labor-intensive craft practiced by thousands of young artists each year .

For the last six years , Nobuki Mitani , has been working as an `` in-between '' animator -- filling in the cells between `` key '' animations . It is one of the lowest paid positions in the animation hierarchy .

Many of these entry-level jobs have been outsourced to the Philippines and South Korea in recent years .

Mitani , 27 , said the hours are long , and the pay is low -- about $ 800 a month .

`` Every day I work about 10 to 12 hours , '' he said . `` Often , we work on Saturday , and if it 's busy , we work Sunday , too . ''

In Tokyo , the world 's most expensive city , that means living in cramped conditions . Mitani lives in a tiny one-room apartment with no air conditioning .

In summer , the room is sweltering .

`` I try not to drink water , '' he said , `` to control the sweating . '' He has a shared sink at the end of the hall where he can wash his hands and face , but to bathe he has to go to a public bath .

At the Tokyo Animation Institute , the classrooms are filled with students honing the craft , faces close to their sheets of paper , the only sound a hum from the electric pencil sharpener .

The school 's director , Yosuke Shimizu , said he knows many of his graduates will quit their first jobs after just months .

`` Within half a year , some will take freelance jobs , some will take a key drawing job , and some will become sketch directors . Those who are good enough never complain about how hard the job is , '' he said .

At Toei Animation Studios , conditions are better for the animators than in smaller studios . Toei has produced countless successes over the years , including the `` Dragonball '' series and the ongoing favorite `` One Piece . ''

But even here animation is an intense , demanding job . Naotoshi Shida has been working at Toei for 25 years . He said it takes much more than just a love of drawing to succeed .

`` If someone is thinking of doing this just because they love drawing , that 's called a hobby . They 'd better think of doing something else . ''

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Association of Japanese Animators says industry rocked by recession

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Group also says free Internet downloading is having a deadly effect

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Japanese animation is roughly a $ 2 billion a year industry

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Revenues peaked in 2006 ; lower advertising revenues lead to fewer new programs